Why Clarity is an Asset

by Colin Cookson, Head of Liquidity, Aviva Investors

Colin Cookson, Head of Liquidity at Aviva Investors, explains why corporate treasurers are looking for better information on how and where their money is invested.

Security of cash assets counts for everything in this uncertain world. Investors want managers who can demonstrate clearly that their funds are securely invested. 

Corporate treasurers across Europe are increasingly using independently-rated money market funds as they diversify their holdings, but it is essential they receive clear information on exactly where and how their money is invested.

Aviva Investors has led the way in transparent reporting across its money market funds. In addition to publishing weighted average maturity (WAM) we also publish weighted average life (WAL) daily on our funds. Clients are sent detailed portfolios weekly showing all fund positions. Beyond this, Aviva Investors has pioneered a move from notional constant net asset pricing to variable net asset value pricing on three of our core cash funds, including the Euro Liquidity Fund. Whilst the stated aim of our Liquidity Funds is to maintain a stable value of 1.000, this level of transparency reassures investors by telling them daily the market value of the underlying investments. In fact our funds have never moved below 1.000.

But transparent reporting is only a start. Investors also want to know that they are dealing with experienced and capable fund managers. They need to ask about a fund’s strategy, about how a manager adds value and about the depth of analytical and research support that is available to that manager.

Aviva Investors has compelling answers to all these questions. We are privileged to have a significant capability in managing euro assets. The Liquidity team in Paris is headed by the talented Olivier Bornecque, who has a proven track record as manager of the €10bn Aviva Investors Monétaire fund for over a decade. Olivier is also lead manager for the €1bn Aviva Investors Euro Liquidity Fund. Performance since launch in 2008 has been strong, with returns consistently ahead of the fund’s benchmark.

This capability in euro markets is complemented by an experienced team in London, where Aviva Investors manages four Sterling money market funds, offering investors a range of risk and duration profiles. The two teams co-operate closely, sharing ideas and monitoring credit risk.

Behind these teams stands an institution with a 40-year track record in managing fixed interest and credit assets. As part of the world’s fifth largest insurance group*, we believe Aviva Investors has the pedigree and institutional DNA to deliver the results and the security that treasurers rightly expect.   

For more information email colin.cookson@avivainvestors.com or visit www.avivainvestors.com
*Based on gross worldwide premiums for the year ended 31 December 2008.